On January 1, 2017, Ellison Co. issued eight-year bonds with a far value of S6,000,000 and a stated interest rate of 6%, payable semiannually on June 30 and December 31. The bonds were sold to Use the following to answer question 12: yield 8%. Table values are: .627 Present value of 1 for 8 periods at 6% 540 Present value of 1 for 8 periods at 8% Present value of 1 for 16 periods at 3% Present value of 1 for 16 periods at 4% .623 .534 Present value of annuity for 8 periods at 6% Present value of annuity for 8 periods at 8% Present value of annuity for 16 periods at 3% Present value of annuity for 16 periods at 4% 6.210 5.747 12.561 11.652 12. The present value of the interest is A) $2,068,920. B) $2,097,360. C) $2,235,600. D) $2,260,980.
On January 1, 2017, Ellison Co. issued eight-year bonds with a far value of S6,000,000 and a stated interest rate of 6%, payable semiannually on June 30 and December 31. The bonds were sold to Use the following to answer question 12: yield 8%. Table values are: .627 Present value of 1 for 8 periods at 6% 540 Present value of 1 for 8 periods at 8% Present value of 1 for 16 periods at 3% Present value of 1 for 16 periods at 4% .623 .534 Present value of annuity for 8 periods at 6% Present value of annuity for 8 periods at 8% Present value of annuity for 16 periods at 3% Present value of annuity for 16 periods at 4% 6.210 5.747 12.561 11.652 12. The present value of the interest is A) $2,068,920. B) $2,097,360. C) $2,235,600. D) $2,260,980.
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 4EA: On January 1, 2018, Wawatosa Inc. issued 5-year bonds with a face value of $200,000 and a stated...
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